Commerce secretary: No one but 'fraudsters' would complain about missed Social Security check

Commerce Secretary Howard Lutnick raised alarm over “fraudsters” receiving Social Security benefits, as Trump allies have ramped up rhetoric about potential waste in the program amid a major restructuring effort at the agency that oversees the program.

During an appearance on the "All-In" podcast that was released on Thursday, Lutnick said the government doesn’t “have to take one penny from someone who deserves Social Security, not one penny for someone who deserves Medicaid, Medicare.”

“What we have to do is stop sending money to someone who’s not hurt, who's on disability for 50 years,” he claimed. “It’s ridiculous, and they have another job.”

At one point in the wide-ranging, nearly two-hour conversation, Lutnick also said that if Social Security “didn’t send out their checks this month,” his “mother-in-law, who’s 94, she wouldn't call and complain.”

“She’d think something got messed up, and she’ll get it next month. A fraudster always makes the loudest noise, screaming, yelling and complaining,” the billionaire businessman said.

“Anybody who’s been in the payment system and the processes, who knows the easiest way to find the fraudster is to stop payments and listen, because whoever screams is the one stealing,” he said. “Because my mother-in-law’s not calling, come on, your mother, 80-year-olds, 90-year-olds, they trust the government.”

“So, the people who are getting that free money, stealing the money, inappropriately, getting the money, have an inside person who’s routing the money,” he said. “They are going to yell and scream.”

His comments come after tech billionaire Elon Musk, whom President Trump tapped to head up the Department of Government Efficiency, called Social Security “the biggest Ponzi scheme of all time” earlier this month and suggested there could be hundreds of billions of potential cuts targeting waste in entitlement programs.

The rhetoric has prompted pushback from experts and advocates who have accused Trump allies of spreading false claims about the amount of fraud actually found in the program.

Trump has vowed not to cut Social Security benefits, however. Lutnick also said on Thursday that he’s against raising the retirement age — a proposal some Republicans have floated in Congress as a way to help shore up solvency for the program.

“I find it disgusting when we’re the richest country in the world, and some politician says in order to save Social Security, rather than getting rid of the waste, fraud and abuse, we should move it to 70,” Lutnick said. 

“How about no? How about we’re rich enough to give people the benefit of the bargain of being a great American, but let’s put great people in charge,” he said. 

The Commerce secretary was also asked about the idea of a sovereign wealth fund — which Trump pitched earlier this year — and whether it could be a balance sheet for Social Security, as its trust funds are projected to be depleted in about a decade.

“We have a budget deficit of $2 trillion. So, Donald Trump wants to knock down the $2 trillion, and then he's focused about the 36 trillion, which the Social Security is part of it,” Lutnick said this week, referring to the nation’s $36 trillion-plus debt. 

“So, how he allocates it? He was elected president of the United States,” he said. “I was not. I like the Social Security idea because it's really easy to explain to people and sell to people, and so they understand it.”

“But the fact is that it’s the same money if I put it in Social Security or I put it on the debt of the United States of America, and I’m gonna let Donald Trump make that decision,” he said.

In the last Congress, senators had also discussed the idea of a sovereign wealth fund as a means to help finance Social Security. 

Since Trump’s inauguration, thousands of federal employees have been axed as the administration looks to significantly reshape the federal government. The administration has signaled more firings are on the way, even after a recent court order that found some terminations were unlawful prompted officials to move to reinstate upward of 20,000 workers.

Last month, the Social Security Administration (SSA) notified employees that “significant workforce reductions” were on the way amid reports that thousands of workers could be let go. Dozens of SSA offices are also expected to shutter as the government-wide cost-cutting operation continues.

Additionally, the SSA said on Monday that individuals would be required to come in person to verify their identity instead of doing so via telephone if unable to use online-authentication. The agency said the measure is aimed at safeguarding “Social Security records and benefits against fraudulent activity.”

— Updated at 4:33 p.m. EDT